Nielsen Study: Consumers Love Streaming, But Radio Still Strong

Consumers are flocking to music, with streaming becoming the preferred channel of choice.

Billboard is reporting the latest study from Nielsen Music shows 90 percent of the population listens to music and that, on average, they do so 32.1 hours a week. That's up from 86 percent in the prior annual study, when listening time averaged 26.6 hours a week.

The study, Nielsen Music 360 2017 U.S. Report, also finds that people on average spend $156 annually on music, with live performances snaring the greatest percentage of that. In the prior year, consumers spent on average $153.

Of that, live performances accounted for 54 percent; buying CDs, LPs, downloads and music gift cards totaled 29 percent; streaming 9 percent and satellite radio 8 percent.

Excluding attendance at concerts, the various forms of streaming comprises a 41 percent share of listening time, while terrestrial and satellite radio comprise 25 percent, digital music library 14 percent, physical music formats 11 percent and other 9 percent.

The newly released report also finds traditional radio continues to be the No. 1 means of finding new music. It reveals that among top sources, AM/FM “over the air radio” is preferred by 49%. Second for music discovery is “friends and relatives” at 40%, followed by online music services at 27% and social media at 25%.

Breaking it down further, the report says that among the general population who discover music via these radio sources, 49% utilize AM/FM over the air—an increase of 2% over 2016—while 23% depend on AM/FM radio online, up from 19% year over year; while 14% go to satellite radio, up 3% from 2016.

Nielsen notes, “The raft of new technologies and devices are opening up new discovery methods, but also providing new ways for radio stations to deliver content–most notably via streaming.”

Another interesting reveal pertaining to traditional radio: Nielsen found that 72% of online streamers listen to some other form of radio; while 37% reported that “one of the things they like most about listening to traditional radio—and that adds to the enjoyment of the music—are the DJs.”